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Is it good that shareholders are too stupid to sell their shares today as they don't understand the news?

Is it bad that BAC is insolvent to the tune of $30 billion dollars?

Is it bad that the stock of this walking zombie is rising?

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The market is simply climbing a wall of worry. At some point, people will realize that stocks can't keep climbing while the economy worsens. I hope you're not long the shares of insolvent firms like ACAS (-22% today) when the sheep that trade this market figure out that we're still in a deepening economic crisis.

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By the way, to all the people leaving nasty comments on these blogs: I'm keeping an archive. I can and will use them to humiliate you when the market goes plunging again. Of course, most of you will leave (or shamelessly change your screen names) when the market crashes again just like last fall. It was too bad all my critics left then. Luckily, a new bear market rally makes new suckers.

I have been feeling similarly, but I am getting to the point that I wonder if people really have become this stupid? It really should have dropped at least once before now. I do worry that when it happens it will be a BIG one.

Does Capitalism work, and will it restructure, or will another company take its place eventually? Yes.

GMX not to offend you but your biggest hinderance is your age. I have been investing for decades and if I have learned one lesson over this time it is invest in the market you are in, not the one you want to be in; you will make more money that way.

WWI/II, Vietnam, Cold War, 9/11, huge inflation, 12% unemployment. I have seen it all, and over that time period the overall trend of the market always has been up.

It will only prove to be a bull market rally if future GDP keeps declining. If GDP shows less of a loss next quarter than last, and if subsequent Qs show continued improvement, the bear market is over. It really is as simple as that. Back test if you want. We may not turn into a roaring Bull market but just stay in a trading range for years instead.

How does a Bank that needs $34 Billion have it's shares jump over 10% when that info is released??? I obviously skipped that day in accounting class that taught everyone else that -$34,000,000,000 is a good number to have in my account. Unbelievable....

This whole thing is just bizarre. Especially BAC who went up over 15% after we just found out they needed 34 billion! Last night all the BAC holders thought they were screwed and it seemed assured that the markets would fall especially BAC. It is as if the market is in some sort of upside down world or something.

There has been talk about manipulation going on and after today there does not seem like there can be any doubt about that. The fundamentals don't support this nonsense but it is a matter of how long they can or want to hold it up.

It's one thing to be a company that needs billions and doesn't have the possibility of getting those through earnings or though loans with good terms.

It's another thing to be a company that is told that it hypothetically needs XX billion dollars and that the government will pledge to give those XX billion as a loan with good terms. Further, the business is banking and XX billion in additional loans is going to result in huge future profits (much like GS had this last quarter from all the money thown at it).

Further GM's plan isn't the destruction of GM - its possibly the destruction of GM's shareholders (see my downthumb of GM right now). So - what are the implications to the overall economy? We were previously at an unknown point where GM and Chrysler could be utterly destroyed and broken apart. Now GM will continue, and Chrysler will continue and most of the jobs at these companies will continue. I see that as a positive for the overall economy - while a negative for those who were investors in those companies.

Manufacturing has been coming back, stimulus spending has even really started yet, banking no longer seems to be in nowhere-land. These are positives - these are stability which is what has been missing in 2008-2009. Even consumer sentiment has been rising, and consumer spending hasn't fallen as much as it should.

Do you still think there is no substance behind the market rise? I think it depends a lot on perspective, and my perspective is definitely of the positive sort.

Does Capitalism work, and will it restructure, or will another company take its place eventually? Yes.

GMX not to offend you but your biggest hinderance is your age. I have been investing for decades and if I have learned one lesson over this time it is invest in the market you are in, not the one you want to be in; you will make more money that way.

WWI/II, Vietnam, Cold War, 9/11, huge inflation, 12% unemployment. I have seen it all, and over that time period the overall trend of the market always has been up

VERY VERY WELL SAID

I still say the S&P is going to 950 and will hold it. Once this thing with gm is over, it might go up to 1000. Either way ive said many times over March lows are gone wont be touched again. FED/GOV wont let that happen BAC perfect example of not letting it happen!

By the way, to all the people leaving nasty comments on these blogs: I'm keeping an archive. I can and will use them to humiliate you when the market goes plunging again. Of course, most of you will leave (or shamelessly change your screen names) when the market crashes again just like last fall. It was too bad all my critics left then. Luckily, a new bear market rally makes new suckers.

That does show your age. People make mistakes all the time we live an learn by them. Your just stubborn i guess and not wanting to admit for the last 2 months you were wrong. Alot of people might not be so harsh with words sorta say if you left this 500 S&P alone. You made a comment a few days ago about the P/E should be 14, According to EVERY anaylists and news reporter on every news channel, The current P/E is 14.5. THATS WHAT YOU SAID WE SHOULD BE AT! so if thats the correct number according to you then the S&P AT 900 is the right number 14.....

Retailers like WMT, TGT, and KSS did not participate today. Consumer spending drives the U.S. market. If this were a sustainable bull market, the largest retail companies would be leading at new-high levels. Oil and gold were leaders today. We are 38% above the 666 bottom. The largest depression-era bear rally was +45%. 965.7 will get us there if the psychology can last that long.

GMX should I keep an archive on negative blogs against me that you have written? Just curious. Most people know the market will pull back so your prediction of a market pullback is equivalent of me saying I will be hungry tomorrow morning.

as far as i can tell it's a black box (and black boxes are punished in this kinda market) and it's not clear whether it'll be insolvent.. tho that being said i haven't looked at how much debt they have due in the short run and whether their cash/NOI can reasonably cover that, or whether they can refinance

Well listen to the CC. If they can sell their european arm they should be OK, assuming no further deterioration in the economy. If we really are at a bottom, and personally I think we are, then the company can survive and shares do have nice recovery potential. As for why GMX hates the company I do not know., Personally I am pissed off at them, but because I invested in it in the past, I had to jump in hard when it tanked under $1. Finally recouped my losses and am just riding out the storm with profits.

hmm yeah just glossed over CC... really haven't been following them and i shouldn't have commented.. ACAS is in default.. i guess cuz they breached some covenant? they mentioned they should have enough liquidity to cover debt that comes due this yr.. $230M?

i guess you could hate them for what they did last yr.. confirming their dividend and then cutting it a month later

#26) "I guess you could hate them for what they did last yr.. confirming their dividend and then cutting it a month later"EXACTLY.. Why would anybody waste their time listening to a CC by these guys? How can we believe a word they say? Cheerleading executives is NOT what we need. We need honesty and competency, which they certainly don't have the former and I'm beginning to believe they are deficient in the latter.